Economic necessity for developing the milk sector

Nábrádi, András and Jávor, András and Kukovics, S. and Molnár, G. and Árnyasi, Mariann and Rózsáné Várszegi, Zsófia (2000) Economic necessity for developing the milk sector. Options Mediterraneennes. Serie A: Seminaires Mediterraneens, 43. pp. 75-78. ISSN 1016-121X

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Abstract

The Merinos dominating in the Hungarian sheep industry and the profitability of sheep production is not as high as would be necessary. Economic analysis was made to find out the possible break-even points. According to the results, the increase of milk production might be the key to solve this problem, but some conditions should be considered. Regarding the data presented the possible conclusions might be summarized as follows: Enlarging the stock without improving the phenotypic background is not profitable. This method will lead to a deadlock. The utilization of milk breeds under the present conditions could be realized: (i) if the costs of changing the breeding animals could be covered from other sources, since national sources are not available; (ii) if the attitude of the managers and employees of milk sheep farms could change; and (iii) if the price of milk was reasonable and the state purchase prices could reach the average prices of the EU (1 Euro/litre).

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